According to Dennis Grabow, Dupont's March 30 SEC filing says only 45% of suppliers responded to a readiness survey, and, there is good liklihood that 65% of those responding will not meet readiness targets.

No URL as this info froma site requiring paid registration. Someone could confirm at SEC's edgar site if they wish.

-- Puddintame (achillesg@hotmail.com), May 04, 1999

Answers

Poole says they'll be fine. Just need to squirrel away a couple of jugs of benzene.

-- a (a@a.a), May 04, 1999.

Who is Dennis Grabow? What did the readiness survey ask? What are the readiness targets? Are these critical suppliers? Is DuPont taking any other steps? What does 'good likelihood' mean in practice?

While this doesn't sound at all positive, it doesn't sound very detailed either. Kind of hard to understand why duPont would just stand by and let their supply lines dry up without more of a fight. Surely they must realize the risks they face.

-- Flint (flintc@mindspring.com), May 04, 1999.

Who is Flint? Does Flint not understand English? What part of screwed does Flint not understand? Are Flints reading skills better than his computer skills? Will someone give Flint a clue?

-- sickofgovtrolls (tuesday@night.blues), May 04, 1999.

sickofgovtrolls: Go pick on someone who deserves it!! I was going to ask the same question, after I went to Edgar to see if I could find the stuff.

C

-- chuck, a Night Driver (rienzoo@en.com), May 04, 1999.

Grabow

http://www.millenniuminvest.com/

-- dave (wootendave@hotmail.com), May 05, 1999.

Just read the Report :o)

>>>>>>>>>>>>

As of December 1998, approximately 45 percent of key supplier recipients have
responded to the survey. The company assessed approximately 65 percent of the
total number of survey recipients as having a high risk of not being Year
2000-capable on a timely basis. Based on what the company believes to be an
unacceptably high percentage of key suppliers who are either not
willing to disclose specific information about their Year 2000 readiness, or who
do not indicate sufficient progress toward readiness, the company is including
in its plans training sessions, telephone interviews and face to face
discussions to understand state of readiness of key suppliers and to assist them
with becoming Year 2000-capable.

>>>>>>>>>>>

The company currently expects total expenditures to become Year 2000-capable to
be in the range of $350 million to $400 million, of which 20 percent represents
internal costs. As of December 31, 1998, the company had spent an estimated $190
million on implementing its plan. The company does not specifically track all
costs associated with employees working on Year 2000 projects, but has included
an estimate of these costs in the amount of internal costs included in the range
above. Form 10-K405 for DUPONT E I DE NEMOURS & CO filed on Mar
19 1999 1:12PM

 EDGAR ONLINE Document Purchase

http://www.edgar-online.com/bin/cobrand/?doc=A-30554-0001036050-99- 000528&nav=1

Year 2000 Readiness Disclosure
 

The Year 2000 problem concerns the application of computer systems written usingsix (e.g. 12/31/99) versus eight (e.g. 12/31/1999) digits to define the
applicable date. This could result,
 

34          & nbsp;          & nbsp;            DuPont
 
           & nbsp;         Management's Discussion and Analysis
 
 
 

among other things, in computer systems recognizing "00" as the year 1900 rather
than the year 2000. Computer hardware, software, and embedded chip equipment are affected, and if such systems and components are not remediated satisfactorily,
it could lead to plant interruptions or temporary shutdowns, the generation of
financial and business misinformation, or the interruption of the company's
supply chains, or those of its suppliers or customers.

The company has identified its critical and significant internal systems which
will require remediation to provide for the company's continuing business
operations after January 1, 2000. Approximately 75 percent of the company's
computer systems are classified as either critical or significant. A critical
system is considered to be one, which if not operational, would have an imminent
safety, environmental, or community impact, or would cause a business to be
non-operational for more than a few days. A significant system is one which
could potentially cause a safety, environmental or community incident, or will
require significant manual effort to assure uninterrupted business operations.
The company is addressing the Year 2000 problem in these systems, and continues
its analysis of the Year 2000 readiness of key third parties. Computer Sciences
Corporation and Andersen Consulting, who operate the majority of the company's
global information systems and technology infrastructure, are assisting in these
activities.

The initial inventory and assessment phases of the company's internal systems
are essentially completed. Progress continues to be made in the remediation
phase of the company's plan in which systems that are not Year 2000-capable are
repaired, replaced or retired, and remediated systems are tested and returned to
active use.

Project reporting data indicates that approximately 85 percent of the company's
critical and significant computer systems are now Year 2000- capable, and the
remaining systems in these categories are expected to be remediated on the
following schedule:

-------------------------------------------------------------------- ------------
Systems         & nbsp;          & nbsp;          & nbsp;          & nbsp;          & nbsp;    Time Frame
------------------------------------------------------------------- -------------
Mainframe Corporate Data Centers     & nbsp;          & nbsp;          & nbsp;        4/99
Mid-Range Computers       & nbsp;          & nbsp;          & nbsp;          & nbsp;     10/98-6/99
Telecommunications        & nbsp;          & nbsp;          & nbsp;          & nbsp;     11/98-3/99
Corporate (e.g. Payroll and Electronic Mail)   & nbsp;          & nbsp;         6/99
Business (e.g. Inventory Processing)     & nbsp;          & nbsp;            12/98-4Q99
Manufacturing, Process Control and Equipment   & nbsp;          & nbsp;       4Q98-4Q99
=================================================================== =============

The company believes its critical and significant internal computer systems will
be Year 2000-capable in a timely manner. The remaining systems are considered to
be of minimal criticality because they are judged to have no significant impact
on safety or continuity of operations. However, the company's computer systems
are complex, highly interdependent, and globally integrated, and there are a
number of risks associated with the complexity and high degree of integration of
the systems. For example, an incorrect classification of the importance of a
system or systems, or the cumulative effect of a number of negligible systems
that have not been remediated, could result in an unpredicted failure or
shutdown in one or more of the company's business or manufacturing systems,
which could have a significantly adverse effect on production or cost of
operations. The current belief is that this has a relatively low probability of
occurring. To minimize these risks, the company has employed highly skilled and
knowledgeable information technology and plant personnel in its decision making
processes and in developing its plan to perform integrated systems testing in
its businesses and/or manufacturing operations.

The company is continuing its Business Partner Year 2000 Program with its major
customers and key suppliers. The purpose of this process is to (1) assess
external parties as either low, moderate or high risk for Year 2000
non-readiness based on information they provide about their own readiness, and
(2) to help formulate contingency plans. However, no screening method is
guaranteed, and the accuracy of information provided by external parties about
their own readiness cannot be guaranteed by the company. Additionally, certain
external parties may refuse to respond to a readiness survey or request for
information, and the company categorizes such non-responding parties as
high-risk for non-readiness. It is possible that these suppliers and customers
may, in fact, be prepared to address Year 2000 concerns, but simply refuse to
respond. Conversely, various suppliers and customers may respond that they are
Year 2000 ready and be assessed as low risk, when, in fact, they are not ready.

As of December 1998, approximately 45 percent of key supplier recipients have
responded to the survey. The company assessed approximately 65 percent of the
total number of survey recipients as having a high risk of not being Year
2000-capable on a timely basis. Based on what the company believes to be an
unacceptably high percentage of key suppliers who are either not
 

           & nbsp;          & nbsp;          & nbsp;  DuPont          & nbsp;          & nbsp;          & nbsp;  35
 
           & nbsp;         Management's Discussion and Analysis
 
 
 

willing to disclose specific information about their Year 2000 readiness, or who
do not indicate sufficient progress toward readiness, the company is including
in its plans training sessions, telephone interviews and face to face
discussions to understand state of readiness of key suppliers and to assist them
with becoming Year 2000-capable.

In addition, the company is conducting an assessment of its major customers,
focusing on their Year 2000 capability as it affects ordering procedures, and
delivery of and payment for company products. As of December 1998, the company
had contacted approximately 40 percent of these customers and currently
anticipates completing this assessment by March 1999. The company has assessed
28 percent of contacted customers as being in the high risk category. The
company has invited certain of these customers to a series of Year 2000 forums
to communicate the processes and status of DuPont's Year 2000 efforts.

The company's plant and business operations are highly dependent on a continuous supply of key services from raw material suppliers and utility providers. If the Year 2000 problem causes suppliers and utility providers to fail to deliver such essential materials and services, multiple disruptions in the company's plant operations, computer infrastructure or telecommunications systems could result.
Because of the inherent uncertainties associated with the Year 2000 problem,
including understanding the Year 2000 readiness of these key third parties, it
is not possible to quantify the potential impact at this time. However, failure
of key suppliers, utility providers, major customers or the company to properly
and timely address the Year 2000 problem could have a material adverse effect on
the company's financial condition, results of operations or liquidity.
Furthermore, there can be no guarantee that any contingency plans developed by
the company will prevent such failures from having a material adverse effect.
The company believes that there is a low probability that these multiple
failures are likely to occur.

Contingency plans are being formulated by each of the company's various business
units. Preliminary plans were completed in January 1999 and final plans must be
submitted by the end of the second quarter of 1999. These plans will address
potential disruptions with the business, administrative and manufacturing
operations, and supply chain interruptions by key suppliers and major customers.
The company has certain options, which include among other things sourcing raw
material supplies from alternate vendors, arranging for back-up or alternate
transportation carriers, scheduling certain plant shutdowns within specific
business units during the latter part of December, and preparing for manual
operation of various procedures in circumstances where this is practical. These
plans will continue to be updated during the remainder of 1999.

The company currently expects total expenditures to become Year 2000-capable to
be in the range of $350 million to $400 million, of which 20 percent represents
internal costs. As of December 31, 1998, the company had spent an estimated $190
million on implementing its plan. The company does not specifically track all
costs associated with employees working on Year 2000 projects, but has included
an estimate of these costs in the amount of internal costs included in the range
above. The company does not include the costs of systems projects which will
address the Year 2000 problem but were initiated to accomplish other (non-Year
2000) objectives. The company will fund Year 2000 expenditures from company cash
flow from operations and expects that total remediation costs, including the
reallocation of internal resources, will not have a material adverse effect on
the company's financial condition, results of operations or liquidity.

The foregoing timetable and assessment of costs to become Year 2000- capable
reflect management's best estimates. These estimates are based upon many
assumptions, including: assumptions about the cost, availability and ability of
resources to identify and classify systems properly; properly identifying them
as needing remediation; locating, remediating and modifying affected systems;
and making various assessments of Year 2000 readiness of key third parties.
Based upon its activities to date, the company does not believe that these
factors will cause its current cost and timetable projections to differ
significantly from those estimated. However, the company cannot reasonably
estimate the potential impact on its financial condition, results of operations
or liquidity if critical third parties, including suppliers, customers and
governments, do not become Year 2000-capable on a timely basis.

>>>>>>>>>>>>>>>
The company has identified its critical and significant internal systems which
will require remediation to provide for the company's continuing business
operations after January 1, 2000. Approximately 75 percent of the company's
computer systems are classified as either critical or significant. A critical
system is considered to be one, which if not operational, would have an imminent
safety, environmental, or community impact, or would cause a business to be
non-operational for more than a few days. A significant system is one which
could potentially cause a safety, environmental or community incident, or will
require significant manual effort to assure uninterrupted business operations.
>>>>>>>>>>>>>>

Systems          & nbsp;          & nbsp;          & nbsp;          & nbsp;          & nbsp;   Time Frame
------------------------------------------------------------------- -------------
Mainframe Corporate Data Centers     & nbsp;          & nbsp;          & nbsp;        4/99
Mid-Range Computers       & nbsp;          & nbsp;          & nbsp;          & nbsp;     10/98-6/99
Telecommunications        & nbsp;          & nbsp;          & nbsp;          & nbsp;     11/98-3/99
Corporate (e.g. Payroll and Electronic Mail)   & nbsp;          & nbsp;         6/99
Business (e.g. Inventory Processing)     & nbsp;          & nbsp;            12/98-4Q99
Manufacturing, Process Control and Equipment   & nbsp;          & nbsp;       4Q98-4Q99
=================================================================== =============

The company believes its critical and significant internal computer systems will
be Year 2000-capable in a timely manner. The remaining systems are considered to
be of minimal criticality because they are judged to have no significant impact
on safety or continuity of operations. However, the company's computer systems
are complex, highly interdependent, and globally integrated, and there are a
number of risks associated with the complexity and high degree of integration of
the systems. For example, an incorrect classification of the importance of a
system or systems, or the cumulative effect of a number of negligible systems
that have not been remediated, could result in an unpredicted failure or
shutdown in one or more of the company's business or manufacturing systems,
which could have a significantly adverse effect on production or cost of
operations. The current belief is that this has a relatively low probability of
occurring. To minimize these risks, the company has employed highly skilled and
knowledgeable information technology and plant personnel in its decision making
processes and in developing its plan to perform integrated systems testing in
its businesses and/or manufacturing operations.

-- Brian (imager@ampsc.com), May 05, 1999.

I wonder how many companies supply some of the raw materials that DuPont needs, if they have to go shoping for a new supplier? I wonder how many are maybe only in other countries?

I guess we'll be seeing more of these, now that some of the vendor surveys are starting to come back. That is if anybody makes the info public... <:)=

-- Sysman (y2kboard@yahoo.com), May 05, 1999.

Three of DuPont's critical supplier or vendors are obviously oil, rail transportation and oil transport (oceangoing tankers and pipelines). I seriously wonder if all three aren't going to combine to drag DuPont, Dow and all the rest of the chemical industry down.

But at least we won't have that darned WonderBoy, his DuPont Chevy, the Rainbow Warriors and the annoying Brooke to make us ill in 2000.

WW

-- Wildweasel (vtmldm@epix.net), May 05, 1999.